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Crude Oil Sinks More Than 3% as US Production Grows

July 7, 2017 at 16:30 by Vladimir Vyun

Prices for crude oil sank more than 3% today as concerns about oversupply on the market returned. Yesterday, prices rallied as US oil inventories declined more than was expected. Yet today, traders focused on the data that showed an increase of US production of crude by 1% to 9,34 million barrels last week.

There was some good news for crude as Russia signaled that it does not oppose the idea of adjusting the supply cut deal if necessary. It is a complete opposite to the country’s stance demonstrated earlier this week, when Russia said it is not ready to discuss deeper production cuts. The Organization of Petroleum Exporting Countries and some non-OPEC producers, including Russia, made an agreement last year to reduce their output as a measure to support falling oil prices.

Futures for delivery of WIT crude oil in August dropped 3.05% to $44.13 per barrel as of 16:23 GMT on NYMEX today. September contract for Brent crude declined 3.1% to $46.62 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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